DaVita Earnings Call Transcripts
Fiscal Year 2026
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2026 OI growth is projected above the low end of long-term targets, driven by U.S. dialysis, international, and IKC segments. Margin maintenance, cost controls, and IT investments are key, while APTC expiration and clinical programs will shape future mix and volume. Double-digit EPS growth and disciplined capital deployment remain priorities.
Fiscal Year 2025
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Fourth quarter and full-year 2025 results met expectations, with adjusted operating income of $2.094 billion and first profitable year in IKC. 2026 guidance calls for 3.2% OI growth and 33% EPS growth, supported by clinical initiatives and capital discipline.
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Volume and revenue per treatment were challenged by flu and a cyber incident, but guidance was maintained. Mortality and mistreatment rates remain elevated, with future growth hinging on operational improvements and mortality reduction. Capital allocation is focused on share buybacks and disciplined M&A.
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Q3 results met expectations with $517M adjusted operating income and $2.51 EPS, despite a 1.5% volume decline due to discrete events. Full-year guidance was reaffirmed, with 2026 outlook hinging on volume recovery, payer mix, and policy changes.
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Q2 results met expectations despite cyber and volume headwinds, with strong cost control offsetting revenue and treatment declines. Full-year guidance for operating income, EPS, and free cash flow was reaffirmed, while persistent elevated mortality and mistreatment rates remain key challenges.
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Q1 adjusted operating income and EPS exceeded expectations despite a cyber incident and flu-related headwinds. Guidance for 2025 is maintained, with phosphate binder profitability and strong international results offsetting lower treatment volumes and cyber costs.
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Flat treatment growth is forecast for 2024, with ongoing cost pressures from labor and inflation. Regulatory changes, such as the transition of oral phosphate binders to TDAPA, and evolving ACA subsidy dynamics are key financial factors. International growth and integrated kidney care remain strategic priorities.
Fiscal Year 2024
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Full-year 2024 saw strong adjusted OI and EPS growth, with 2025 guidance projecting continued EPS gains despite flat treatment volume and cost headwinds from new oral drug reimbursement. International and IKC segments faced unique challenges, but capital allocation remains focused on growth and share repurchases.
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Revenue per treatment and labor costs have outperformed expectations, while patient volume remains below pre-COVID levels due to persistent elevated mortality. Regulatory changes, supply chain issues, and payer mix shifts are shaping the outlook, with 2025 expected to balance headwinds and tailwinds.
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Q3 results met expectations with $535M adjusted OI and $2.59 EPS, despite hurricane and supply chain disruptions. 2024 guidance reaffirmed; volume growth remains challenged by elevated mortality, but margin expansion and strong cash flow support continued capital returns.
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Q2 2024 saw strong adjusted operating income and EPS, driven by improved revenue per treatment and cost controls, despite lower-than-expected volume growth from weather and elevated mortality. Guidance for 2024 was raised, with RPT growth now expected at 3.5%-4% and continued focus on operational efficiency.